James Hardie Industries will sell its European Fermacell business to Swiss building-materials company Holcim for EUR840 million in cash, or about $980 million. The transaction is expected to close in the first half of next year.

The provider of exterior home and outdoor living solutions stated the divestiture will help it focus on higher-growth and higher-return markets. James Hardie also intends to close its European fiber cement business, subject to legal, regulatory and employee consultation requirements.

The company said the divestiture is expected to strengthen its balance sheet, accelerate deleveraging and improve its margin profile and return on invested capital.